SOE Loss Surge: State Enterprises Record 300% Rise in FY25 Losses
Pakistan witnessed a sharp SOE loss surge during fiscal year 2024-25. Loss making public entities posted a net loss of Rs123 billion. In contrast, losses stood at Rs30.6 billion a year earlier. As a result, losses jumped by nearly 300 percent in one year. This sudden rise has triggered serious concern across policy circles.
During the first half of FY25, struggling entities reported losses of Rs343 billion. However, the figure showed a minor two percent improvement compared to last year.
Big Institutions, Heavy Losses
Several large organizations led the downturn. The National Highway Authority recorded the highest loss at Rs153 billion. Meanwhile, Quetta Electric posted a loss of Rs58.1 billion. Sukkur Electric followed with losses of Rs29.6 billion.
Pakistan Railways reported a shortfall of Rs26.5 billion. In addition, Peshawar Electric and Pakistan Steel Mills added further strain.
Government Review Highlights Key Issues
The Cabinet Committee on State Owned Enterprises met in Islamabad. Finance Minister Senator Muhammad Aurangzeb chaired the session. Officials reviewed the annual performance report for FY25. The Ministry of Finance’s monitoring unit prepared the assessment. Total revenue reached Rs12.4 trillion. However, falling global oil prices reduced income from the energy sector. Profitable entities also felt pressure. Their combined earnings dropped by 13 percent to Rs709.9 billion.
Structural Challenges Remain
Loss making entities showed slight improvement overall. Still, total net losses climbed to Rs122.9 billion. The highway authority faced limits in its toll based revenue model. Road expansion moved faster than income growth. Power distributors struggled with recovery and efficiency gaps. Telecom, postal services, and utility stores faced similar hurdles.
Power producers, including several GENCOs, added to the burden. Neelum Jhelum Hydropower also reported fresh losses.
Overall, more than 15 public entities now carry combined losses of Rs5.8 trillion. Therefore, experts stress urgent reforms, transparency, and sustainable turnaround plans.
